Sep 23, 2022

(Yicai Global) Sept. 23 -- Shares of CRRC Times Electric jumped after the electrical parts unit of major Chinese train maker CRRC set out plans to build new factories for power semiconductor devices and said its products will be used in a new Renault electric car thanks to an order from French auto parts supplier Valeo. After surging as much as 10.5 percent in Shanghai earlier today, Times Electric [SHA: 688187] finished 4.7 percent up at CNY58.31 (USD8.19) a share. Its Hong Kong-listed stock finished 2.9 percent higher at HKD35.85 (USD4.57), having gained 9.5 percent intraday. Chinese stock markets fell. Subsidiary CRRC Times Semiconductor will spend CNY11.2 billion (USD1.6 billion) building two plants for low and medium-voltage power semiconductor devices in CRRC Times Electric’s hometown of Zhuzhou and in Yixing, the parent company said in a statement late yesterday. In a separate announcement the same day, it also said Valeo had chosen CRRC Times Semiconductor to supply insulated gate bipolar transistor modules for its electric drive system. The products will be used in an upcoming Renault model, it said. Orders should exceed 2.5 million units during an expected lifespan of four years, with mass production starting next year. The plant in Zhuzhou, Hunan province should cost CNY5.3 billion (USD746.6 million) and the factory in Yixing, Jiangsu province CNY5.8 billion, with a construction period of two years. Each will be able to turn out 360,000 power semiconductor devices. The Zhuzhou plant will make products used in renewable power generation, industrial control equipment, and household appliances, while Yixing’s output will go into new energy vehicles and the factory could double production in the future. The new factories will bring new growth opportunities to CRRC Times Electric as China relies heavily on imported devices in the field, the company said. A number of domestic and overseas carmakers and renewable power producers have already expressed interest in the upcoming products, it added. Editor: Emmi Laine, Xiao Yi